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Equity for Early Employees in Early Stage Startups

SoCal CTO

I was asked by a reader how much equity he should give out to early employees and to service providers in a very early stage startup. Founders vs. Early Employees To help with this discussion, let me start with a definition of "early employee." I'll get to service providers in a later post. Which means n = (i - 1)/i.

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Why good people leave large tech companies

Steve Blank

After the director left, I must have looked pretty surprised as the CFO explained, “We have tens of thousands of employees, and at the rate we’re growing it’s almost impossible to keep up with our space needs in the Bay Area. This founder’s reality distortion field attracted a large number of employees who shared his vision.

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How to Scale a Venture Capital (or Private Equity) Fund

David Teten

Another example is Correlation Ventures ($300M+ AUM), a VC firm which co-invests in financings with at least one other new outside VC. VC is a “get rich slow” business, because most VC Partners will not see a carry check for 5-10 years, after waiting for both liquidity events and for LPs to be paid first.

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When should you go for equity financing?

Berkonomics

Let’s take a few minutes to examine the kind of equity financing available to small or early stage businesses. If you have a virtual company with your employees working from home locations, as many startups do, it should be the location of the founder. Friends and family investors. Then there is venture capital.

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Intel Disrupted: Why large companies find it difficult to innovate, and what they can do about it

Steve Blank

Second, the leaders of these companies tended to be those who excelled at finance, supply chain or production. But starting in the last quarter of that century and accelerating in this one, a new form of financing – risk capital (angel and venture capital) — emerged. They knew how to execute the current business model.

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How to Fund Your Startup Without Losing Control

Up and Running

practice in mid-sized or large organizations and act more as employees than owners of the medical practice. Over the next decade, most experts predict that independent dentists will rapidly consolidate into larger and larger practices, where eventually their role will shift to that of the employee as opposed to small business owner.

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7 Founding Sins Seed-Stage Startups Should Avoid

View from Seed

Without a full corporate infrastructure of support, and more importantly, without extensive monetary resources, founders and employees must spend wisely. Even if VC financing has been raised, extravagant and wasteful spending by a few founders or company leadership sets the tone for the entire organization.